M&A advisory for the most actively consolidated sector in Australian SMEs.
Industrial and commercial services is the most actively rolled-up sector in Australian mid-market M&A right now. PE-backed platforms, strategic consolidators, and foreign entrants are aggressively acquiring across cleaning, HVAC, plumbing, landscaping and industrial maintenance. Novastrone advises owners and acquirers in this market — where the right buyer pool varies dramatically by sub-sector, and where running the wrong process can quietly cost you years of value.
Sectors we serve.
Each sub-sector has different consolidation dynamics — and a different active buyer pool. The right process depends on knowing which.
- Facilities management
- Commercial cleaning
- HVAC
- Electrical contracting
- Plumbing
- Industrial maintenance & MRO
- Waste management
- Landscaping & grounds maintenance
- Commercial roofing
- Fire & life safety services
- Industrial coatings
- Pest control
What's driving M&A right now.
PE platforms, strategic acquirers, and foreign entrants — all converging on the same recurring-revenue prize.
- PE platform consolidation across cleaning, HVAC, plumbing, landscaping and pest control.
- Strategic acquirers consolidating geographies and adjacent service lines.
- Recurring-revenue services trade at a significant premium to project-based services.
- Foreign PE entrants (US and European platforms) acquiring Australian beachheads.
- Workforce and labour-cost pressure are making scale advantages more valuable, accelerating consolidation.
What buyers actually pay for.
In this sector the recurring-revenue percentage is the single biggest lever on the multiple — closely followed by route density, cross-sell, and skilled-trade retention.
- Recurring-contract revenue vs. one-off project work
- Average contract length and renewal rates
- Geographic and route density (mobile-services models)
- Cross-sell opportunity into existing customer base
- Skilled trade workforce and retention rates
- Compliance and licence portability across jurisdictions
- Technology — job management, customer portal, route optimisation
Recurring-revenue businesses can trade at nearly twice the multiple of project-based operators.” The recurring-revenue premium
Common structures, and the traps that come with them.
PE-platform deals come with their own structural language — rollover, contract retention earn-outs, multi-year founder roles — each requires careful diligence.
- Earn-outs tied to contract renewals (24–36 months).
- Rollover equity is heavily used when selling to PE platforms.
- Working capital normalisation — large WIP balances and customer retentions are common.
- Equipment and vehicle financing is typically assumed or refinanced.
- Founder retention is typically 24–36 months in an operator role for PE platforms.
- Project-heavy revenue mix presented as recurring.
- Sub-contractor classification risk — sham-contracting exposure.
- Aged plant and vehicles requiring imminent replacement.
- Insurance and licence transfer complications across states.
- Customer concentration with major commercial property managers.
Start a confidential conversation.
Whether you're an owner being approached by a platform, or a strategic acquirer building scale — a confidential first call is the right place to begin.
Request a confidential consultation